The Lee Company uses a job-order costing system. The following data were recorded for June:
Overhead is charged to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers.
Added During June—-
Job
umber June 1Work inProcessInventory DirectMaterials Direct Labor
235 $2,500 $600 $400
236 $1,500 $800 $1,000
237 $1,000 $1,200 $1,750
238 $800 $ 1,500 $2,250
1. Lee Company’s work-in-process inventory balance on June 30 was
A. $4,100.
B. $3,300.
C. $9,450.
D. $3,940.

2. Assume there’s no beginning work-in-process inventory and the ending work-in-process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be
A. less than the units started during the period.
B. the same as the units started during the period.
C. the same as the units completed.
D. less than the units completed.

3. Becky works on the assembly line of a manufacturing company where she installs a component part for one of the company’s products. She’s paid $16 per hour for regular time, and time and a half for all work in excess of 40 hours per week. Becky’s employer offers fringe benefits that cost the company $3 for each hour of employee time (both regular and overtime). During a given week, Becky works 42 hours but is idle for 3 hours due to material shortages. The company treats all fringe benefits relating to direct labor as
added direct labor cost and the remainder as part of manufacturing overhead. The allocation of Becky’s wages and fringe benefits for the week between direct labor cost and manufacturing overhead would be
which of the following?
A. Direct Labor: $672 / Manufacturing Overhead: $142
B. Direct Labor: $688 / Manufacturing Overhead: $126
C. Direct Labor: $624 / Manufacturing Overhead: $190
D. Direct Labor: $741 / Manufacturing Overhead: $73

Use the following information to answer this question.
Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were

Cost Percent Complete
Material costs $6,000 50%
Conversion costs $9,900 30%
A total of 9,200 units were started, and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Cost
Material costs $113,900
Conversion costs $322,500

The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the
answer that’s the closest to the answer you computed. To reduce rounding error, carry out all
computations to at least three decimal places.

4. The cost per equivalent unit for materials for the month in the first processing department is closest to
A. $11.39.
B. $11.99.
C. $12.44.
D. $11.82.

Use the following information to answer this question.
The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just-completed year.
Sales $910
Raw materials, inventory, beginning $80
Raw materials, inventory, ending $20
Purchases of raw materials $100
Direct labor $130
Manufacturing overhead $200
Administrative expenses $160
Selling expenses $140
Work in process inventory, beginning $40
Work in process inventory, ending $10
Finished goods inventory, beginning $130
Finished goods inventory, ending $150
5. The cost of the raw materials used in production during the year (in thousands of dollars) was
A. $180.
B. $40.
C. $160.
D. $120.

Use the following information to answer this question.
Sanker Inc. has provided the following data for the month of August. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed
below are all for the current month.

Work InProcess FinishedGoods Cost ofGoods Sold Total
Direct materials $2,790 $7,680 $18,240 $28,710
Direct labor 9,700 19,200 45,600 74,500
Manufacturing
overhead applied 5,440 8,000 18,560 32,000
Total $17,930 $34,880 $82,400 $135,210
Manufacturing overhead for the month was overapplied by $5,000. The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at
the end of the month on the basis of the overhead applied during the month in those accounts.

6. The journal entry to record the allocation of any underapplied or overapplied overhead for August would include
A. credit to finished goods of $1,250.
B. credit to finished goods of $34,880.
C. debit to finished goods of $1,250.
D. debit to finished goods of $34,880.

Use the following information to answer this question.
Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were

Cost Percent Complete
Material costs $6,000 50%
Conversion costs $9,900 30%
A total of 9,200 units were started, an,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Cost
Material costs $113,900
Conversion costs $322,500

The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that’s the closest to the answer you computed. To reduce rounding error, carry out all
computations to at least three decimal places.

7. The total cost transferred from the first processing department to the next processing department
during the month is closest to
A. $420,414.
B. $452,300.
C. $512,700.
D. $436,400.

8. In September, one of the processing departments at Shenkel Corporation had a beginning work-inprocess inventory of $25,000 and an ending work-in-process inventory of $18,000. During the month,
the cost of units transferred out from the department was $304,000. In the department’s cost reconciliation report for September, the total cost accounted for would be
A. $322,000.
B. $644,000.
C. $43,000.
D. $619,000.

Use the following information to answer this question.
Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were

Cost Percent Complete
Material costs $6,000 50%
Conversion costs $9,900 30%
A total of 9,200 units were started, and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Cost
Material costs $113,900
Conversion costs $322,500
The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that’s the closest to the answer you computed. To reduce rounding error, carry out all
computations to at least three decimal places.
9. What are the equivalent units for conversion costs for the month in the first processing department?
A. 360
B. 10,000
C. 8,200
D. 8,560

Use the following information to answer this question.
Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were

Cost Percent Complete
Material costs $6,000 50%
Conversion costs $9,900 30%
A total of 9,200 units were started, and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department
during the month:
Cost
Material costs $113,900
Conversion costs $322,500
The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that’s the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places

9. The cost per equivalent unit for conversion costs for the first department for the month is closest to
A. $33.24.
B. $38.83.
C. $40.77.
D. $37.68.